Empirical Analysis of Relationships between Spatial Proximity and the Type and Likelihood of Venture Capital Financing

Abstract

This chapter aims to shed further light on the impact of spatial proximity on VC financing relationships in Germany by empirically testing hypotheses regarding observable patterns in spatial proximity and the impact of spatial proximity on the likelihood of investment. These hypotheses have been developed in chapter 4 and were derived from a comprehensive theoretical framework regarding the impact of spatial proximity between venture capitalists and investees throughout the investment process. In consequence, this chapter intends to verify important parts of the elaborated theoretical framework for German VC investments.